py 93 STATE OF FLORIDA oo * AGENCY FOR HEALTH CARE ADMINISTRATION BE ee pEpar rs CLERK 2. LIFE CARE CENTER OF HILLIARD, Petitioner, v. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. LIFE CARE CENTER OF OCALA, Petitioner, Vv. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. LIFE CARE CENTER OF ALTAMONTE SPRINGS, Petitioner, v. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. DOAH Case No.: 02-2266MP’ Audit Period: July 31, 2000 Engagement No. NH01-095S Provider No. 214060 DOAH Case No.: 02-2267MPI Audit Period: January 31, 2000 Engagement No. NH01-094S Provider No. 213969 DOAH Case No.: 02-3015MPI Audit Period: September 30, 1999 Engagement No. NH01-004S Provider No. 210137 LIFE CARE CENTER OF ORLANDO, Petitioner, v. STATE OF FLORIDA, AGENCY FOR HEALTH CARE DOAH Case No.: 02-3016MPI Audit Period: January 31, 1999 Engagement No. NH01-007S Provider No. 213403 ADMINISTRATION, Respondent. / FINAL ORDER THE PARTIES resolved all disputed issues and executed a settlement agreement, which is attached and incorporated by reference. The parties are directed to comply with the terms of the attached settlement agreement. Based on the foregoing, this file is CLOSED. DONE AND ORDERED on this the g day of Tallahassee, Florida. Rhonda M. Medows, MD, Secretar Agency for Health Care Administration fut , 2003, in A PARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO A JUDICIAL REVIEW WHICH SHALL BE INSTITUTED BY FILING ONE COPY OF A NOTICE OF APPEAL WITH THE AGENCY CLERK OF AHCA, AND A SECOND COPY ALONG WITH FILING FEE AS PRESCRIBED BY LAW, WITH THE DISTRICT COURT OF APPEAL IN THE APPELLATE DISTRICT WHERE THE AGENCY MAINTAINS ITS HEADQUARTERS OR WHERE A PARTY RESIDES. REVIEW PROCEEDINGS SHALL BE CONDUCTED IN ACCORDANCE WITH THE FLORIDA APPELLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN 30 DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. Copies Furnished to: Keith Goss, Sr. V.P. Reimbursement Life Care Centers of America 3001 Keith Street, NW P.O. Box 3480 Cleveland, Tennessee 37320-3480 Susan Felker-Little, Esquire Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #3 Tallahassee, Florida 32308-5403 Barbara J. Staros Administrative Law Judge The Desoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 Lisa Milton 2727 Mahan Drive, Mail Stop #21 Tallahassee, Florida 32308 Finance and Accounting 2727 Mahan Drive, Mail Stop #14 Tallahassee, Florida 32308 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished to the above named addresses by U.S. Mail on this the G day of , 2003. ef) (ihay Me_| hotsuicl 4 @Lealand McCharen, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #3 Tallahassee, Florida 32308-5403 (850) 922-5873 STATE OF FLORIDA fee ga ey j 03 JUN 10 ANIC: 35 AGENCY FOR HEALTH CARE ADMINISTRATION OEY. LIFE CARE CENTER OF HILLIARD, Petitioner, Vv. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. LIFE CARE CENTER OF OCALA, Petitioner, Vv. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. LIFE CARE CENTER OF ALTAMONTE SPRINGS, Petitioner, v. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. DOAH Case No.: 02-2266MPI Audit Period: July 31, 2000 Engagement No. NH01-095S Provider No. 214060 DOAH Case No.: 02-2267MPI Audit Period: January 31, 2000 Engagement No. NH01-094S Provider No. 213969 DOAH Case No.: 02-3015MPI Audit Period: September 30, 1999 Engagement No. NH01-004S Provider No. 210137 G3 JUN IO ANIC: 25 LIFE CARE CENTER OF ORLANDO, bie Petitioner, v. DOAH Case No.: 02-3016MPI Audit Period: January 31, 1999 STATE OF FLORIDA, Engagement No. NH01-007S AGENCY FOR HEALTH CARE Provider No. 213403 ADMINISTRATION, Respondent. / SETTLEMENT AGREEMENT STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (AHCA or the Agency), and LIFE CARE CENTER OF HILLIARD (LCC of HILLIARD), LIFE CARE CENTER OF OCALA (LCC of OCALA), LIFE CARE CENTER OF ALTAMONTE SPRINGS (LCC of ALTAMONTE SPRINGS), and LIFE CARE CENTER OF ORLANDO (LCC of ORLANDO) (also collectively referred to as PROVIDERS or, individually, as PROVIDER), by and through the undersigned, hereby stipulate and agree as follows: 1. This Agreement is entered into between the parties for the purpose of avoiding the costs and burdens of litigation. 2. PROVIDERS are Medicaid providers in the State of Florida, operating as nursing homes, that were audited by the Agency. 3. The Agency conducted audits of the PROVIDERS’ cost reports for the periods ending as follows: a. LIFE CARE CENTER OF HILLIARD: July 31, 2000. b. LIFE CARE CENTER OF OCALA: January 31, 2000. LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NHO1-095S, 1/31/00/NHO1-094S, 9/30/99/NHO1-004S, 1/31/99/NHO1-007S SETTLEMENT AGREEMENT Page 3 of 11 c. LIFE CARE CENTER OF ALTAMONTE SPRINGS: September 30, 1999. d. LIFE CARE CENTER OF ORLANDO: January 31, 1999. 4. In its Audit Reports issued on March 7, 2002 (LLC of HILLIARD), March 7, 2002 (LLC of OCALA), March 18, 2002 (LCC of ALTAMONTE SPRINGS), and March 18, 2002 (LCC of ORLANDO), AHCA notified PROVIDERS that a review of the respective PROVIDER’S cost report revealed that, in its opinion, some claims in whole or in part were not reimbursable by Medicaid. The Agency further notified each PROVIDER of the adjustments that AHCA was making to its cost report. In response to the Audit Reports, PROVIDERS filed timely petitions for administrative hearings that were assigned DOAH Case Nos. 02-2266, 02- 2267, 02-3015, and 02-3016, subsequently consolidated as DOAH Case No. 02-2266. 5. In their petitions for administrative hearing, PROVIDERS identified specific adjustments that they appealed. 6. Subsequent to issuance of the Audit Reports, AHCA and PROVIDERS exchanged documents and discussed adjustments that were at issue, and the matters were remanded from DOAH to AHCA for the execution of a settlement agreement by all parties. LEC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NHO1-095S, 1/31/00/NHO1-094S, 9/30/99/NHO1 -004S, 1/31/99/NHO1-007S SETTLEMENT AGREEMENT Page 4 of 1} 7. As a result of the aforementioned exchanges, the parties agree that the Agency’s adjustments that were the subject of these proceedings, as they relate to each cost report for each of the following entities for the following audit periods, shal! be as follows: a. LIFE CARE CENTER OF HILLIARD, audit period ended July 31, 2000: 1) Audit Adjustment #2 (Legal and Accounting Costs) will be reduced from ($1,293) to ($721). 2) Audit Adjustment #3 (General Liability Costs) will be removed. 3) Audit Adjustment #4 (Group Insurance Costs) will be reduced from ($12,060) to ($5,255). 4) Audit Adjustment #5 (Travel Costs) will be reduced from ($4,346) to ($3,081). 5) Audit Adjustment #6 (Meetings Costs) will be reduced from ($4,101) to ($1,200). 6) Audit Adjustment #10 (Depreciation -- Equipment) will be removed, 7) Audit Adjustments #17, #18, and #20 (Adjustments to Ending Equity) will be removed. LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NHO1-095S, 1/31/00/NHO1-094S, 9/30/99/NHO1-004S, 1/31/99/NHO1-007S SETTLEMENT AGREEMENT Page 5 of 11 8) The Mortgage Interest Rate will be restated to 8.17% fixed for all three dates listed on page 7 of the audit report. b. LIFE CARE CENTER OF OCALA, audit period ended January 31, 2000: 1) Audit Adjustments #10 and #11 (Allowable Ancillary Costs) will be removed. 2) Audit Adjustments #15 and #16 (Patient Care Costs) will be removed. 3) Audit Adjustment #28 will be amended by removing the 206 square feet increase of Beauty and Barber, and increasing the adjustment of Patient Care by 206 square feet, to an increase in Patient Care square footage of 862. 4) The Mortgage Interest Rates shown on page 7 of the audit report (Schedule of Fair Rental Value System Data) will be changed from “variable” to "fixed”. c. LIFE CARE CENTER OF ALTAMONTE SPRINGS, audit period ended September 30, 1999: 1) Patient Care Costs will be increased by $300 (to reverse a cost report-Schedule D offset) by means of a new audit adjustment to Other Patient Care. d. LIFE CARE CENTER OF ORLANDO, audit period ended January 31, 1999: LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/3 1/00/NHO1-095S, 1/31/00/NHO1-094S, 9/30/99/NHO1 -004S, 1/31/99/NHO1-007S SETTLEMENT AGREEMENT Page 6 of 11 1) Patient Care Costs will be increased by $346 (to reverse a cost report- Schedule D offset) by means of a new audit adjustment to Other Patient Care. 8. In order to resolve this matter without further administrative proceedings, PROVIDERS and AHCA expressly agree that the adjustment resolutions, as set forth above, will resolve and settle these cases completely. As such, this Agreement constitutes PROVIDERS’ withdrawal of their petitions for administrative hearing, with prejudice. 9. PROVIDERS and AHCA further agree that the Agency shall recalculate the per diem rate for these time periods, and issue notices of the recalculations to each PROVIDER. ‘Where any PROVIDER was overpaid, that PROVIDER will remit payment to the Agency in the full amount of the cost within thirty (30) days of such notice. Where any PROVIDER was underpaid, AHCA will remit payment to that PROVIDER in the full amount of the underpayment within forty-five (45) days of such notice. 10. Payment shall be made to: AGENCY FOR HEALTH CARE ADMINISTRATION Medicaid Accounts Receivable Post Office Box 13749 Tallahassee, Florida 32317-3749 PROVIDER PROVIDER Life Care Center of Hilliard Life Care Center of Ocala US 1 & 3" Street 2800 SW 41° Street Hilliard, FL 32046 Ocala, FL 34474 LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA ie Ys 7/31/00/NHO1-095S, 1/31/00/NHO1 -094S, 03 JUN | 0 AM 0 39 9/30/99/NHO1-004S, 1/31/99/NH01-007S a . SETTLEMENT AGREEMENT Page 7 of 11 i JE PROVIDER PROVIDER Life Care Center of Life Care Center of Orlando Altamonte Springs 3211 Rouse Road 989 Orienta Avenue Orlando, FL 32817 Altamonte Springs, FL 32701 Payment shall clearly indicate that it is pursuant to a settlement agreement and shall reference the audit period/engagement number (for example, Audit Period: July 31, 2000/Engagement No. NHO1-095S). 11. Each PROVIDER agrees that failure to pay any monies due and owing under the terms of this Agreement shall constitute that PROVIDER’S authorization for the Agency, without further notice, to withhold the total remaining amount due under the terms of this agreement from any monies due and owing to PROVIDER for any Medicaid claims. 12. PROVIDERS and AHCA reserve the right to enforce this Agreement under the laws of the State of Florida, the Rules of the Medicaid Program, and all other applicable rules and regulations. 13. This Agreement does not constitute an admission of wrongdoing or error by any party with respect to the respective case being resolved herein or any other matter. However, the parties believe that these matter should be settled because the parties have agreed to the terms contained within this Agreement. 14. Each party shall bear its own attorneys’ fees and costs, if any. LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NHO1-095S, 1/31/00/NHO1-094S, 9/30/99/NHO1-004S, 1/31/99/NH01-007S SETTLEMENT AGREEMENT Page 8 of 11 15. The signatories to this Agreement, acting in a representative capacity, represent that they are duly authorized to enter into this Agreement on behalf of the respective parties. PROVIDERS agree to forward a copy of this agreement to AHCA with original signatures, and understand that a Final Order may not be issued until the Agreement with original signatures is received by AHCA. 16. | This Agreement shall be construed in accordance with the provisions of the laws of Florida. Venue for any action arising from this Agreement shall be in Leon County, Florida. 17. This Agreement constitutes the entire agreement between PROVIDERS and AHCA, including anyone acting for, associated with or employed by them, concerning all matters and supersedes any prior discussions, agreements or understandings; there are no premises, representations or agreements between PROVIDERS and AHCA other than as set forth herein. No modification or waiver of any provision shall be valid unless a written amendment to the Agreement is completed and properly executed by the parties. 18. This is an Agreement of settlement and compromise, made in recognition that the parties may have different or incorrect understandings, information and contentions, as to facts and law, and with each party compromising and settling any potential correctness or incorrectness of its understandings, information and contentions as to facts and law, so that no misunderstanding or misinformation shall be a ground for rescission hereof. LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NHO01-095S, 1/31/00/NHO1-094S, 9/30/99/NHO1 -0048, 1/31/99/NHO1-007S SETTLEMENT AGREEMENT Page 9 of 11 19. PROVIDERS expressly waive in these matters their rights to any hearing pursuant to sections 120.569 or 120.57, Florida Statutes, the making of findings of fact and conclusions of law by the Agency, and all further and other proceedings to which PROVIDERS may be entitled by law or rules of the Agency regarding these proceeding and any and all issues raised herein, other than enforcement of this Agreement. PROVIDERS further agree that they shall not challenge or contest any Final Order entered in these matters that is consistent with the terms of this Agreement in any forum now or in the future available to it, including the right to any administrative proceeding, circuit or federal court action or any appeal. 20. This Agreement is and shall be deemed jointly drafted and written by all parties to it and shall not be construed or interpreted against the party originating or preparing it. 21. To the extent that any provision of this Agreement is prohibited by law for any reason, such provision shall be effective to the extent not so prohibited, and such prohibition shall not affect any other provision of this Agreement. 22. This Agreement shall inure to the benefit of and be binding on each party’s successors, assigns, heirs, administrators, Tepresentatives and trustees. 23. All times stated herein are of the essence of this Agreement. LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NH01-095S, 1/31/00/NHO1-0945S, 9/30/99/NHO1 -004S, 1/3 1/99/NHO1-007S SETTLEMENT AGREEMENT Page 10 of 11 24, This Agreement shall be in full force and effect upon execution by the respective parties in counterpart. LIFE CARE CENTER OF HILLIARD Heth Dyn Dated: Gaal 2/ , 2003 By: Keith Ge $JS (print name above) Its:_ Sr. Vite Presi tent ot Rev} Wi Somer (print title above) LIFE CARE CENTER OF OCALA eth an. Dated: by yu _ 2 / , 2003 By: Kerth (wv & (print name above) Its: $e. Vite President of Revi by Sernent (print title above) LIFE CARE CENTER OF ALTAMONTE SPRINGS Keth Decne Dated: boyrad 2/2003 By: Ker th _loy _ (print name above) Itsi$ts Vice Presitent of Rein bucemenk (print title above) LLC OF HILLIARD, OCALA, ALTAMONTE SPRINGS, and ORLANDO v. AHCA 7/31/00/NHO1-095S, 1/31/00/NHO1-094S, 9/30/99/NHO01-0048S, 1/31/99/NHOiI-007S SETTLEMENT AGREEMENT Page 11 of 11 LIFE CARE CENTER OF ORLANDO 4q + Lett, ba Dated: Hayek L/ , 2003 By: leith Gees (print name above) Its: Se. Vice Presitlevt of Keim ourtemert (print title above) AGENCY FOR HEALTH CARE ADMINISTRATION 2727 Mahan Drive, Mail Stop #3 Tallahassee, FL Proce 5403 Dated: (a [ © _,2003 Bob Powe Deputy Secretary, Medicaid 2 A the y lh Vigo Dated: Mig, FA 2003 Valda Clark Christian F General Counsel SLL | a ee NSC SuSan C. Felker-Little Assistant General Counsel Dated: Z/ 2 3 2003

Docket for Case No: 02-003016MPI